International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)

Vol. 5, Issue 2, pp: (870-873), Month: October 2017 - March 2018, Available at: www.researchpublish.com

The Impact of Training and Development on

Organizational Performance in Banking Sector
of Bangladesh
Ms. Nusrat Khurshid
School of Business, Independent University, Bangladesh, 16 Aftabuddin Road, Dhaka 1212

Abstract: To perform with the today’s vibrant environment specialized and competent personnel are required for
each association. The workforce must to be educated and the progress of a worker to be extremely expert is
important. For the purpose of research two banks are selected “Prime Bank Limited” and “Dutch Bangla Bank
Limited”. The study is focused on the Training & Development (T & D) and Organizational Performance for the
banking sector in Bangladesh. Banking sector is selected as envoy due to its sponsorship role in the economy of a
country. It is the most decisive for service business to keep their employees’ knowledge and capability up to the
blotch because of the international infiltration happening in services. Employees were given a prepared
questionnaire. Sample size was 100. This gives the study a quantitative and practical track for outcome. Major
result was that most of the employees approved that T & D had an affirmative impact on the organizational
performance in the banking sector of Bangladesh.
Keywords: Training & development, Design of training, On the job training, Organizational performance.

1. INTRODUCTION

Skilled human resources are the key to a business’ accomplishment. It has been exposed that the most triumphant and
dynamic employees are those who have acknowledged wide-ranging training and development. These groups of
employees are known as the “emulsion of the crop” that frequently has the strongest chance in an organization’s future.
Training has the diverse function in the execution of the executive target by integrate the security of business as well as
personnel (Stone R J. Human Resource Management, 2002). Recently training is the main significant feature in the
business. Training enhances the competence as well as the value for equally human resources and business. The
organizational performance and employee performance depends on diverse factor. Training helps to increase the
competence of workforce. Those who have taken on the job training they have better performance.
The performance of the organization depends on the employee performance. To get the organizational goal need to
develop the performance of the employee. So it is compulsory to provide appropriate training to the workers. The intend
of the study is to indicate the collision of training and development on organizational performance in the banking sector.
Training & development enhance the employee performance. Researcher emphasized on the employee performance
which raises the overall organizational performance. Employee performance is based on the job satisfaction,
understanding, administration and training (Chris Amisano, 2010). So it states that training and development is helpful for
the organizational achievement. The major goal of the study is how the training boosts the performance of the
organization. Training extends the supervisory expertise along with the efficiency and effectiveness (RobartT.RostiJr,
Frank shipper, 1998). It also helps to decrease the operational cost, liabilities and shifting objectives.

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Research Publish Journals
 International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 5, Issue 2, pp: (870-873), Month: October 2017 - March 2018, Available at: www.researchpublish.com

2. LITERATURE REVIEW
For every organization human resource performs as the backbone. So each year organization invests a large amount of
money to enhance the employee performance through training program which is linked with the organizational strategic
objective.
Performance is the explanation part to attain the target of the association so to raise the efficiency and competence of the
organization which is supportive for the accomplishment of the managerial purpose. A worker is able to work more
successfully and competently to boost the development and the effectivenessof anorganization. Lots of factors can
improve the effort of the workerlike bendable scheduling, training etc.
To develop a designfor the training is a very important thing. Training design should be based on the needs of the
employee (Ginsberg, 1997). If the training designs are good and made based on the employee needs then the organization
will get more benefits. Training design is acting as the most imperative function in the employee along with the
managerial performance. If the training plan is not good or perfect then it will the enormous defeat of money and time.
On the job training assists human resources to obtain the acquaintance of their career in a superior mode. People are
trained from their realistic understanding which is better than academic acquaintance. On the job training decreases the
expenditure and recovers time. This training is superior for the association to provide their human resources because it
recovers time and also cost effective (Ruth Taylor et al., 2004). On the job training is the best way to gain knowledge
because it is realistic.
The style of delivery is a extremely imperative measurement of Training and Development. Workers are extremely aware
about the delivery style. Delivery style makes training more enjoyable. If the delivery style is unimpressive and unable to
detain the concentration of the spectators it will be nothing just wastage of money and time. So the trainer needs tomore
connect with the spectators during the training session. Delivery style denotes the effectiveness of the training and
development program (Carlos A. Primo Braga, 1995).
Without training it is not possible to perform well in the organization. Qualified human resources do well than
inexperienced workers (Partlow, 1996; Tihanyi et al., 2000; Boudreau et al., 2001). The training program is incredibly
essential for association to provide its human resources training obtaining general objective of the association in a
superior approach. Training boosts the in general presentation of the association. Training is expensive for the association
but it is very important to train their employees because infuture it will provide back extra than it took. Eachassociation
should inflate employeesworth based on the requirement for fighting with their challenger.
Conceptual framework:

Research problem:
Main research problem is the impact of the training and development on organizational performance in banking sector of
Bangladesh.
Goal:
1. To know the current image of training plan of banks for their human resources.
2. To observe the effectiveness for the improvement of the organizational performance.
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 International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 5, Issue 2, pp: (870-873), Month: October 2017 - March 2018, Available at: www.researchpublish.com

Hypotheses:
H1: Training design has noteworthy outcome on the performance of the organization.
H2: On the job training has noteworthy result on the performance of the organization
H3: Delivery style has momentous result on the performance of the organization.
H4: Training & development has major upshot on the performance of the organization.

3. METHODOLOGY
Research Design:
There are diverse types of research technique. The technique includes: qualitative research, quantitative research, and a
combination of both qualitative and quantitative research.

Sample:
To analyze the association of training collision on performance of employees in Banks of Dhaka, Bangladesh, 2 banks
were visited for data collection; survey was targeted 100 employees. The sample is combined with male and female.

Estimation technique:
The information is composed through a questionnaire. It consists of 15 questions. They are close ended questions with the
application of a five point Likert scale. It expressed by strongly disagree, disagree, neutral, agree and strongly agree.
These were circulated and received by hand from the organizations in the office timings.The investigation of the survey
was carrying out by using Statistical Package for Social Sciences (SPSS).

Analysis:
H1: The significance of beta is =0.870 which is positive and demonstrates positive change in dependent variable due to
independent variable’s element training design . The value of T is 6.9507 that are significant and equally P value is less
than 0.05 so these results are giving enough justification to allow hypothesis 1.
H2:The significance of beta is = 1.005 which is positive and indicates positive change in dependent variable due to
independent variable’s element on-job training. The value of T is 37.17 which are significant and P value is less than 0.05
so according to adequate justification so hypothesis 2 is accepted.
H3: The significance of beta is = .974 which is positive and demonstrates positive alteration in dependent variable due to
independent variable’s delivery style. The value of T is 23.290 which is significant and P value is less than 0.05 so
according to adequate justification so hypothesis 3 is accepted.
H4: The significance of beta is =0.890 which is positive and demonstrates positive change in dependent variable due to
independent variable training and development. The value of T is 5.8609 that are significant and equally P value is less
than 0.05 so these results are giving enough justification to allow hypothesis 4.
Table 1: Regression

Hypothesis Variable Standardized T Value P Value Noteworthy/Irrelevant

regression weight
H1 Training 0.870 6.9507 .0000** Noteworthy
design
H2 On the job 1.005 37.17 .0000** Noteworthy
training
H3 Delivery style .974 23.290 .0000** Noteworthy

H4 Training & 0.890 5.8609 .0000** Noteworthy

development

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 International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 5, Issue 2, pp: (870-873), Month: October 2017 - March 2018, Available at: www.researchpublish.com

Table 2: Descriptive Statistics

Variable Mean Standard deviation N

Training design 4.6617 .48443 100
On the job training 4.622 .47166 100
Delivery style 4.605 .44794 100
Training & development 4.6417 .49443 100

4. DISCUSSION
According to the analysis the training design needs to be based on employee’s criteria. Those organizations make the
training design as per employee’s needs they are getting better benefits. It plays a vital role on employee’s performance
along with organizational performance because organization’s goals will be achieved by employees. On the job training is
the effective training scheme because it is practical along with senior employees are assigned to train the junior
employees. Delivery style of the trainers ensures the effectiveness of the training. If organizations train employee well,
superior have the self-belief to obtain the power and to deal with their subordinate. Through training and development
program not only employee performance will enhance, turnover rate will fall but also organizational performance will
enhance along with gaining profit.
Managerial implication:
To compete with the rivals and the challenging world training and development is extremely imperative for an
association. Training and development is ultimately helps the organization. This study will assist organization to realize
the significance of training and developments including which features aresignificantfor a good training and how effective
for the employee.

5. CONCLUSION
Training Design, On the Job Training, Delivery style as well as Training and Development have noteworthy result on
Organizational Performance and all completely responsible for the improvement of the performance of the organization.
Discussion and results proof all the hypotheses which indicate the enhancement of the overall organizational performance.

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